Online Auctions And Online Absentee Bidding: What’s The Difference?

Technology has made it more confusing to understand how auctions work. With the increased use of smartphones, tablets, and computers, it is possible to do more and more on the web. Many wonder what the difference is between online auctions and online absentee bidding. The following can help you understand these two auction terms before you begin bidding.

How online absentee bidding works

You may find an item you want to bid on that is coming up for sale at auction, but you know you won’t be able to attend. If this happens, you can still register to take part in the auction through online absentee bidding. When you have been approved to place bids, go back to the item of interest and list the maximum amount you are willing to pay. This amount is called your absentee bid.

You can place these bids up to one hour before the start of the auction. All absentee bids will be processed once the auction starts to determine which is the highest. The winner is determined by finding the second highest bid and adding one bid increment to the amount. This bid is then told to the auctioneer.

The auctioneer knows the winning amount from the absentee bids at the start of the auction. If they do not receive an amount higher than this, the online absentee bid will win the item. Sometimes the winning bid is lower than what was stated as the maximum amount to be paid, or someone on the floor goes over the amount listed as winning. When this happens, computer software can continue bidding on the party’s behalf until the maximum is reached.

There are situations during bidding called “footing,” where a person on the floor wins the item for the same amount as the absentee bidder. This happens when the computer is bidding for the party, but the person on the floor reaches the maximum before it does. Once that max amount is reached, the computer can no longer bid on behalf of the absentee.

The process of online auctions

An online auction is held strictly through the internet. There is no physical sale to attend where you place bids. These sales begin at a set time and remain open for hours, days, or weeks. While the auction is open, you will be able to track your bids and see the highest one on each item. You will not know how high each bidder is willing to go, but you can decide for yourself what increment you will raise your bid.

An email is sent to the highest bidder and to those whose bids are too low. If, at the end of the auction, the winning bid is higher or the same as the least amount the seller has agreed to accept, then that bid wins the item. There are many ways to pay for items from online auctions, so be sure to research how and when to pay before bidding.

If you have any questions about live or online auctions, call the experts at High Plains Auctioneers today. You can reach us at (806) 244-6776 or Contact Us by email for more information about Bidding and Selling at auction. You can also see our Upcoming Auctions to see what have have available.